Antuan Company set the following standard costs for one unit of its product.

Direct materials (6 Ibs. @ $5 per Ib.)	$	30
Direct labor (2 hrs. @ $17 per hr.)		34
Overhead (2 hrs. @ $18.50 per hr.)		37
Total standard cost	$	101

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factorys capacity of 20,000 units per month. Following are the companys budgeted overhead costs per month at the 75% capacity level.

Overhead Budget (75% Capacity)

Variable overhead costs
Indirect materials	$	45,000
Indirect labor		180,000
Power		45,000
Repairs and maintenance		90,000
Total variable overhead costs				$	360,000
Fixed overhead costs
Depreciationbuilding		24,000
Depreciationmachinery		80,000
Taxes and insurance		12,000
Supervision		79,000
Total fixed overhead costs					195,000
Total overhead costs				$	555,000

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (91,000 Ibs. @ $5.10 per lb.)

$

464,100

Direct labor (30,500 hrs. @ $17.25 per hr.)

526,125

Overhead costs

Indirect materials

$

44,250

Indirect labor

177,750

Power

43,000

Repairs and maintenance

96,000

Depreciationbuilding

24,000

Depreciationmachinery

75,000

Taxes and insurance

11,500

Supervision

89,000

560,500

Total costs

$

1,550,725

Requirements (Show all work, and all steps to each solution) #1 Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. #2 Compute the direct materials cost variance, including its price and quantity variances. #3 Compute the direct labor cost variance, including its rate and efficiency variances. #4 Prepare a detailed overhead variance report that shows the variances for individual items of overhead.